Shares close lower, as recession fears mount
Last updated: 4:40pm AEST
The ASX has closed the week lower, as rising interest rates overseas this week, and forecasted local hikes next month, increase fears of a potential recession.
The S&P/ASX200 closed sharply lower, dropping 125.50 points or 1.87% to 6,574.70, setting a two month low.
The broader All Ordinaries dropped 132.70 points or 1.92% to 6,788.70.
All 11 sectors ended lower for the day, with the Consumer Discretionary Sector the worst performer, falling more than 4.5%.
As worries mount over a recession damaging consumer discretionary spending, investors took flight from a number of travel stocks.
Webjet (ASX:WEB) and Flight Centre Travel (ASX:FLT) shares were both down around 4% in afternoon trading.
Webjet shares plunged to a day low of AU$5.04 and Flight Centre Travel shares hit a day low of AU$15.26.
Australian shares continue losses, as global rate hikes squeeze
Last updated: 1:20pm AEST
Australian shares continued their tumble, rattled by forecasted interest rate hikes both at home and abroad.
The S&P/ASX200 sustained sharp declines to sit 125.20 points, or 1.87% lower, at 6,575.00, to set a new two month low.
The All Ordinaries were sharply lower, dropping 127.60 points or 1.84% to 6,793.80.
All 11 sectors were lower, with the Consumer Discretionary sector the worst performer, falling more than 4%.
Whitehaven Coal (ASX:WHC) defied broader market losses to see its shares lift more than 4% in morning trading today, hitting a new 52-week high of AU$9.33.
Rising alongside Whitehaven shares were New Hope Corporation Limited (ASX:NHC), Rio Tinto Limited (ASX:RIO), Fortescue Metals Group Ltd (ASX:FMG).
Aussie shares tumble, as global interest rates rise
Last updated: 10:40am AEST
The Australian share market has fallen today, as central banks across the globe continue to hike interest rates, fuelling recession concerns.
Taking its direction from Wall Street declines overnight, the S&P/ASX200 dropped 85.50 points or 1.28% to 6,614.70 in morning trading, to a new 20-day low.
The All Ordinaries dropped 90.70 points or 1.31% to 6,830.70.
Across the market, 10 of 11 sectors were lower, with the Information Technology, Consumer Discretionary and A-REIT sectors the biggest losers, all falling more than 2%.
Amid the ongoing market volatility, high-yielding ASX shares delivering dividends, are likely to become favourites amongst many investors.
Insignia Financial Ltd (ASX:IFL), Perenti Global (ASX:PRN), Nine Entertainment Co. Holdings Limited (ASX:NEC) are among the highest-paying dividend shares, all with yields of more than 6%.
Pre-market breakdown
The ASX is set to open lower when it returns after the market holiday today, as central banks across the globe hike up interest rates to curb inflation, increasing fears of a possible recession.
After Wednesday’s ASX close, local market eyes turned to the United States, when the U.S. Federal Reserve delivered a 0.75% rate hike.
Since then the Bank of England has increased its key rate by 0.5%, while the Swiss National Bank and the central bank of South Africa both increased theirs by 0.75%.
ASX futures were down 0.2% to 6,631 approaching 7am AEST.
Overnight on Wall Street, stocks closed in the red, as the market absorbed the U.S. Fed’s latest rate hike.
The Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) were down 0.36%, 0.85%, and 1.17%, respectively.
If the ASX continues following Wall Street’s movements, as it has over the last week, Australian shares are likely to head in the same direction when trading resumes today.
Locally, eyes now turn to see how the Reserve Bank of Australia (RBA) reacts when it meets to hand down its next interest rate decision early next month.
The Australian dollar was around US66.40c at the U.S. market close.
Brent Crude was up around 0.8%, at around US$90 a barrel.
Gold was down slightly by about 0.15%, at around $US1671 an ounce.
Iron ore dropped around 1.5%, to sit at about US$98 a tonne.
Meanwhile, Bitcoin (BTC) was up by around 4%, to about US$19,200.
Market watch
Amid the ongoing market volatility, high-yielding ASX shares delivering dividends, are likely to become favourites amongst many investors.
Insignia Financial Ltd (ASX:IFL), Perenti Global (ASX:PRN), Nine Entertainment Co. Holdings Limited (ASX:NEC) are among the highest-paying dividend shares, all with yields of more than 6%.
Their dividend payout ratios also hint at sustainable distributions.
